De Grey Mining Ltd (ASX:DEG) has received encouraging results from an additional 17 reverse circulation (RC) drill holes at the Toweranna Gold Deposit in Western Australia.
The RC program has now been completed with a total of 42 holes drilling an advance of 10,126 metres.
New high-grade results include
• 11 metres at 2.11 g/t gold from 45 metres;
• 8 metres at 2.71 g/t gold from 31 metres (including 3 metres at 6.73 g/t gold from 35 metres); and
• 7 metres at 9.27 g/t gold from 209 metres (including 1 metre at 25.5 g/t gold from 209 metres).
Importantly, the new drilling results confirm lateral extensions and additional stacked lodes and add further support to an anticipated substantial increase to the current open pit resource to 200 metres depth.
De Grey is currently evaluating the potential to extend gold lodes beyond 200 metres with selected scout diamond holes testing for mineralisation between 200-600 metres depth.
READ: De Grey Mining latest drill results support resource upgrade
De Grey technical director Andy Beckwith said: “De Grey continues to successfully establish strong shallow gold mineralisation at Toweranna.
“Toweranna continues to open our eyes to this new style of gold mineralisation.
“We don’t know how big Toweranna can be just yet as it remains open and is only constrained by the limit of drilling.
“This next phase of deeper scout diamond drilling will give us an indication of the resource potential between 200-600 metres depth.”
Forward programs
Toweranna is considered to have potential for significant resource growth, and potential for both open pit and underground mining.
This potential is considered significant and may have a material and positive impact on the 2019 prefeasibility study (PFS).
READ: De Grey Mining completes ore sorting test work from its Toweranna Gold deposit in WA
RC drilling to expand resources to a nominal 200 metres depth has now been completed with all RC drilling results received.
Assays results from limited infill diamond drill holes to 200 metres depth remain pending.
A new resource estimate is in progress and planned for completion in the September quarter. Reporting of the detailed metallurgical test work is on track to be reported in June.